Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (March 2012)
98 slides from Novo Nordisk A/s Class B's roadshow presentation, March 2012
Slide 1: Investor presentation March 2012
Investor presentation March 2012
Slide 2: Forward-looking statements
Investor Presentation - SRI focus March 2012 Slide no 2 Forward-looking statements Novo Nordisk‟s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company‟s Annual Report 2011 and Form 20-F, both expected to be filed with the
Slide 3: Content
Investor Presentation - SRI focus March 2012 Slide no 3 Content Highlights – 2011 performance Business update Sustainability update R&D update Financials and outlook
Slide 4: Highlights - full year 2011 (1 of 2)
Investor Presentation - SRI focus March 2012 Slide no 4 Highlights - full year 2011 (1 of 2) Sales development • Sales increased by 11% in local currencies driven by Victoza® and modern insulins • Victoza® sales reached DKK 5,991 million (growth of 159% in DKK) • Healthcare reforms impacted sales gr
Slide 5: Highlights - full year 2011 (2 of 2)
Investor Presentation - SRI focus March 2012 Slide no 5 Highlights - full year 2011 (2 of 2) Social performance - patients • Active contribution to UN High-Level Meeting call to action on non-communicable diseases, incl. diabetes • Capacity-building scaled up: more than 800,000 healthcare profession
Slide 6: Victoza and modern insulins continue to drive growth
Investor Presentation - SRI focus March 2012 Slide no 6 Victoza® and modern insulins continue to drive growth – full year 2011 Sales as reported Growth analysis Other Local currencies Growth Share of Norditropin® +13% growth +5% 4% Modern insulins 11% 41% 8% Human insulins (8%) (14%) NovoSeven® +4%
Slide 7: North America continues to drive sales growth
Investor Presentation - SRI focus March 2012 Slide no 7 North America continues to drive sales growth – full year 2011 Growth analysis Region China Local currencies Growth Share of +11% growth Japan & Korea North America 18% 61% +10% 8% Europe 2% 6% 9% North America International Operations 17% 21%
Slide 8: Novo Nordisk continues to expand leadership position within diabetes care
Investor Presentation - SRI focus March 2012 Slide no 8 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK billion Novo Nordisk Lilly BMS GLP-1 Insulin OAD 30% Takeda Merck Novartis Tota
Slide 9: Victoza reached blockbuster status in 2011
Investor Presentation - SRI focus March 2012 Slide no 9 Victoza® reached blockbuster status in 2011 Reported Victoza® sales Victoza® sales split per region DKK North America Europe billion Int. Operations Japan & Korea 5% 6% 27% 62% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2011 sales of DKK 6.0 billion 2009 20
Slide 10: Degludec and DegludecPlus regulatory update
Investor Presentation - SRI focus March 2012 Slide no 10 Degludec and DegludecPlus regulatory update • New drug applications (NDA) submitted to FDA on 29 September 2011 USA • FDA review ongoing, PDUFA action date set for 29 July 2012 • NDA submitted to EMA on 26 September 2011 EU • EMA review ongoin
Slide 11: Social performance – patients: Helping people live better lives
Investor Presentation - SRI focus March 2012 Slide no 11 Social performance – patients: Helping people live better lives Tackling the diabetes pandemic
Slide 12: Social performance – employees: Offering a healthy and engaging working environment
Investor Presentation - SRI focus March 2012 Slide no 12 Social performance – employees: Offering a healthy and engaging working environment Managing growth
Slide 13: Environmental performance: Decoupling impacts from business growth
Investor Presentation - SRI focus March 2012 Slide no 13 Environmental performance: Decoupling impacts from business growth Optimising ressource use Sales CO2 emissions
Slide 14: Social performance – assurance: Promoting responsible business practices
Investor Presentation - SRI focus March 2012 Slide no 14 Social performance – assurance: Promoting responsible business practices • Quality mindset • Responsible sourcing • 76 inspections: • 177 supplier audits, no significant no significant re-inspections critical non-conformities no warning letter
Slide 15: Case studies demonstrate shared value
Investor Presentation - SRI focus March 2012 Slide no 15 Case studies demonstrate shared value: Contributing to sustainable growth 02: Changing diabetes in China A business case study to explore the value of educating patients and health care professionals and building strong relations with local st
Slide 16: US Blueprint for Change: Creating shared value
Investor Presentation - SRI focus March 2012 Slide no 16 US Blueprint for Change: Creating shared value value to value to society Novo Nordisk • Strengthened healthcare system Increased market potential and market share • Intensive health care professional training programmes • Leading innovation
Slide 17: Research and Development update
Investor Presentation - SRI focus March 2012 Slide no 17 Research and Development update Diabetes care and obesity • Degludec and DegludecPlus regulatory process progressing according to plan in Europe, US, Japan1 Switzerland and Canada • In two 52+52 weeks extension trials2 in people with type 1 an
Slide 18: Financial results – full year 2011
Investor Presentation - SRI focus March 2012 Slide no 18 Financial results – full year 2011 DKK million 2011 2010 Change Sales 66,346 60,776 9% Gross profit 53,757 49,096 9% Gross margin 81.0% 80.8% Sales and distribution costs 19,004 18,195 4% Percent of sales 28.6% 29.9% Research and development c
Slide 19: Long-term financial targets
Investor Presentation - SRI focus March 2012 Slide no 19 Long-term financial targets Performance against long-term financial targets Average Result Previous Updated 2007-2011** 2011 targets targets Operating profit growth 20% 18% 15% 15%* Operating margin 29% 34% 35% 35%* Operating profit after tax
Slide 20: Non-financial results – full year 2011
Investor Presentation - SRI focus March 2012 Slide no 20 Non-financial results – full year 2011 2011 2010 Change Social performance - patients People with diabetes using Novo Nordisk injectable products (million) (estimate) 24 N/A N/A Donations (DKK) 81 84 (3.6%) HCPs trained or educated in diabetes
Slide 21: Long-term non-financial targets
Investor Presentation - SRI focus March 2012 Slide no 21 Long-term non-financial targets Performance against long-term non-financial targets Result Updated Target 2011 targets Long-term social targets Least developed countries where Novo Nordisk sells insulin acc. to the differential pricing policy
Slide 22: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation - SRI focus March 2012 Slide no 22 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion Expa
Slide 23: Financial outlook 2012
Investor Presentation - SRI focus March 2012 Slide no 23 Financial outlook 2012 Expectations 2 February 2012 Sales growth - local currencies 7-11% Around 4 percentage points higher than Sales growth - reported growth in local currencies Operating profit growth - local Around 10% currencies Operating
Slide 24: Closing remarks 1/2
Investor Presentation - SRI focus March 2012 Slide no 24 Closing remarks 1/2 Solid market performance Promising pipeline • +10% annual diabetes care market growth • The only company with two new generation driven by diabetes prevalence1 insulins submitted for approval • 24% market share in diabetes
Slide 25: Closing remarks 2/2
Investor Presentation - SRI focus March 2012 Slide no 25 Closing remarks 2/2 Robust management processes Sustainability-driven innovation • Sustainability metrics support performance • Triple Bottom Line approach and stretch towards corporate strategy objectives targets encourage innovation • Patien
Slide 26: Investor information
Investor Presentation - SRI focus March 2012 Slide no 26 Investor information Share information Investor Relations contacts Novo Nordisk‟s B shares are listed on the stock exchange in Novo Nordisk A/S Copenhagen under the symbol „NOVO B‟. Its ADRs are listed on Investor Relations the New York Stock
Slide 27: Appendix
Investor Presentation - SRI focus March 2012 Slide no 27 Appendix 1. Novo Nordisk at a glance 2. The Triple Bottom Line business approach 3. Diabetes 4. Biopharmaceuticals 5. Financials
Slide 28: Novo Nordisk at a glance
Investor Presentation - SRI focus March 2012 Slide no 28 Novo Nordisk at a glance The core equity story Global leader in diabetes care Global insulin market share: 50% • A focused pharmaceutical company with leading positions in diabetes, haemophilia and hGH Europe: • Double digit top line growth, d
Slide 29: Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders
Investor Presentation - SRI focus March 2012 Slide no 29 Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders Diabetes care Haemophilia hGH DKK Market value DKK Market value DKK Market value billion Novo Nordisk market share billion Novo Nordisk market share billion Novo
Slide 30: Double digit top line growth driven by diabetes pandemic
Investor Presentation - SRI focus March 2012 Slide no 30 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly Number of people with diabetes sales by therapy continues to grow DKK Million billion Diabetes care Haemophilia Growth disorders Other people North Americ
Slide 31: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation - SRI focus March 2012 Slide no 31 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2009 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabetes No Data <4.5% 4.5-5.9%
Slide 32: Insulin is the ultimate care for people with diabetes
Investor Presentation - SRI focus March 2012 Slide no 32 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and Distribution of patients and value across treatment intensification treatment classes Tablets GLP-1 Insulin Diet and excercise -cell function Tablets GLP
Slide 33: Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins
Investor Presentation - SRI focus March 2012 Slide no 33 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share Sales of segment Patent Brand name Type Launch 2011 Nov 2011 expiration Fast-acting EU: 1999 12.8 bDKK EU: 2017* 47% insulin US: 20
Slide 34: Significant growth opportunities fuelled by strong R&D pipeline
Investor Presentation - SRI focus March 2012 Slide no 34 Significant growth opportunities fuelled by strong R&D pipeline Diabetes care Degludec/ NN1218 – ultra NN1953 – oral DegludecPlus fast acting insulin insulin NN9926 – oral IdegLira Liraglutide depot GLP-1 Liraglutide for NN9924 – oral Semaglut
Slide 35: Growth opportunities supported by strong global presence in both sales and manufacturing
Investor Presentation - SRI focus March 2012 Slide no 35 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions excl. headquarter and manufacturing Global manufacturing setup • API production North America: ~4,200 • Formulation & filling • Asse
Slide 36: High barriers to entry in biologics
Investor Presentation - SRI focus March 2012 Slide no 36 High barriers to entry in biologics Novo Nordisk position is protected by ...and significant barriers to entry value chain setup, patents... for biosimilar players Unique value Chain position Patent protection1 Research & Development • Need to
Slide 37: Operating profit growth targeting 15%, driven by gross margin improvements and operational leverage
Investor Presentation - SRI focus March 2012 Slide no 37 Operating profit growth targeting 15%, driven by gross margin improvements and operational leverage The fundamental drivers of Operating profit operating profit growth DKK billion Gross margin improvement • On-going productivity improvements o
Slide 38: Operating profit after tax to net operating assets, and Free Cash flow to earnings both targeting 90%
Investor Presentation - SRI focus March 2012 Slide no 38 Operating profit after tax to net operating assets, and Free Cash flow to earnings both targeting 90% Operating profit after tax to net operating assets and Invested capital Free cash flow DKK DKK billion billion Note: Operating profit after t
Slide 39: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation - SRI focus March 2012 Slide no 39 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion Expa
Slide 40: Sustainable business model
Investor Presentation - SRI focus March 2012 Slide no 40 Sustainable business model Financially responsible Competitive financial performance Socially responsible Environmentally responsible Health and well-being for people Eco-balance and animal welfare
Slide 41: The 10 Essentials
Investor Presentation - SRI focus March 2012 Slide no 41 The 10 Essentials 1. We create value by 6. We treat having a patient centred everyone business approach. with respect. 2. We set ambitious 7. We focus on personal goals and strive for performance and excellence. development. 3. We are accounta
Slide 42: Stable ownership structure
Investor Presentation - SRI focus March 2012 Slide no 42 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation Novo Nordisk • The Novo Nordisk Foundation is a self- Foundation Institutional and governing institution that: private investors •
Slide 43: The Novo Group Charter
Investor Presentation - SRI focus March 2012 Slide no 43 The Novo Group Charter • The 'Charter for companies in the Novo Group' describes the common set of values for companies in the Novo Group. • Present as well as future companies in the Novo Group must demonstrate willingness, ability and resolv
Slide 44: Sustainability strategy
Investor Presentation - SRI focus March 2012 Slide no 44 Sustainability strategy A true leader in the transition towards global sustainable development Managing our Responding Driving systemic business to changing change in areas sustainably stakeholder of strategic business expectations interest Ri
Slide 45: Industry-specific sustainability challenges
Investor Presentation - SRI focus March 2012 Slide no 45 Industry-specific sustainability challenges
Slide 46: Managing non-financial risks and opportunities 1/2
Investor Presentation - SRI focus March 2012 Slide no 46 Managing non-financial risks and opportunities 1/2 The challenges Novo Nordisk’s response 1. Access to medicines and pricing strategies in low- 1. Strategy revisited; engagement with critical income and emerging economies stakeholders; Base of
Slide 47: Managing non-financial risks and opportunities 2/2
Investor Presentation - SRI focus March 2012 Slide no 47 Managing non-financial risks and opportunities 2/2 The challenges Novo Nordisk’s response 6. Non-communicable diseases a barrier 6. Diabetes advocacy and contributions to UN to global growth and development high level meeting in 2011 on NCDs 7
Slide 48: Creating and enhancing value through the Triple Bottom Line business approach
Investor Presentation - SRI focus March 2012 Slide no 48 Creating and enhancing value through the Triple Bottom Line business approach Maximise upside Minimise downside Intangible Revenue Cost Risk Value Responsive and inclusive stakeholder engagement
Slide 49: Emphasis on multiple dimensions of performance underpins business success
Investor Presentation - SRI focus March 2012 Slide no 49 Emphasis on multiple dimensions of performance underpins business success Ranked #1 in 2012 Global 100 Triple Bottom Line Management ‘clean capitalism’ index • Expanding access to healthcare • Promoting healthy lifestyles • Offering an inclusi
Slide 50: Novo Nordisk's annual reporting universe 2011
Investor Presentation - SRI focus March 2012 Slide no 50 Novo Nordisk’s annual reporting universe 2011 ANNUAL REPORT WEBSITE: REPOSITORY AND ADDITIONAL INFORMATION OTHER REPORTING Manage- Financial Social Financial1 Social Environ- Gover- Stake- Our 20F GRI2 IIRI3 CoP4 ment state- and env. mental na
Slide 51: Diabetes
Investor Presentation - SRI focus March 2012 Slide no 51 Diabetes
Slide 52: Diabetes – the inability to manage blood sugar levels appropriately
Investor Presentation - SRI focus March 2012 Slide no 52 Diabetes – the inability to manage blood sugar levels appropriately Definition Insulin secretion profile ‟A metabolic disorder of multiple aetiology characterised by chronic hyperglycaemia with disturbances of carbohydrate, fat and protein met
Slide 53: UKPDS: Tight glycaemic control reduces risk of micro- and macro-vascular complications
Investor Presentation - SRI focus March 2012 Slide no 53 UKPDS: Tight glycaemic control reduces risk of micro- and macro-vascular complications UKPDS 10 year follow-up: Risk reduction by lowering HbA1c by 1% Legacy effect of tight glycaemic control Diabetes- Peripheral related Myocardial Microvascul
Slide 54: Insulin – a hormone enabling blood sugar to enter cells
Investor Presentation - SRI focus March 2012 Slide no 54 Insulin – a hormone enabling blood sugar to enter cells The aim of insulin therapy is to recreate Insulin enables food to become energy normal blood insulin profile • Facilitates uptake of blood sugar into cells 70 Short-lived, rapidly generat
Slide 55: The insulin market is comprised of three segments
Investor Presentation - SRI focus March 2012 Slide no 55 The insulin market is comprised of three segments Global insulin volume market by segments Action profiles of insulins tMU CAGR volume: 7.7% CAGR value*: 14.0% Fast acting 33% Fast acting 32% Premix 30% Premix 35% Long acting 37% Long acting 3
Slide 56: Sustained double-digit insulin market growth
Investor Presentation - SRI focus March 2012 Slide no 56 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2006-2011 of the insulin market DKK billion Volume CAGR: CAGR: 6.3%* 14.0%* • Prevalence of diabetes 19.2 • Rising diagnosis rates and tre
Slide 57: Global insulin volume continues to grow as the diabetes pandemic expands
Investor Presentation - SRI focus March 2012 Slide no 57 Global insulin volume continues to grow as the diabetes pandemic expands Number of people with diabetes Regional insulin volume growth continues to grow North America China Million people North America Europe China Europe International Operati
Slide 58: Value growth driven by conversion to modern insulins and better devices
Investor Presentation - SRI focus March 2012 Slide no 58 Value growth driven by conversion to modern insulins and better devices 2006 North America Japan & Korea China 2011 Europe IO Global Modern insulin volume penetration Device volume penetration Note: Monthly MAT Nov 2011, volume figures. Size o
Slide 59: Maintaining insulin leadership by sustaining modern insulin market share
Investor Presentation - SRI focus March 2012 Slide no 59 Maintaining insulin leadership by sustaining modern insulin market share Novo Nordisk volume market share across insulin classes Novo Nordisk Sanofi Eli Lilly Class % of total market Human insulin Modern insulin Total insulin Market value*: DK
Slide 60: Solid insulin growth across diverse regions
Investor Presentation - SRI focus March 2012 Slide no 60 Solid insulin growth across diverse regions Market Market volume Novo Nordisk volume value size & growth composition market share 16% Basal Novo Nordisk 47.1 5% 7% 52.7 47% North America 37% Fast-acting 59% 41% Rest Premix 23.5 3% 2% 24.5 26%
Slide 61: Novo Nordisk strategic injectable therapies exhibit steady sales growth
Investor Presentation - SRI focus March 2012 Slide no 61 Novo Nordisk strategic injectable therapies exhibit steady sales growth Sales as reported Key growth drivers DKK billion • Steady growth in global diabetes prevalence • Clear strategic focus on expanding and Total: achieving leadership in CAGR
Slide 62: Still a significant potential for Novo Nordisk on the US modern insulin market
Investor Presentation - SRI focus March 2012 Slide no 62 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetration 120
Slide 63: Maintaining the solid leadership position on the European modern insulin market
Investor Presentation - SRI focus March 2012 Slide no 63 Maintaining the solid leadership position on the European modern insulin market EU insulin market by segments EU modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetration 16
Slide 64: Stable leadership position on the rapidly growing Chinese insulin market
Investor Presentation - SRI focus March 2012 Slide no 64 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration Shanghai F
Slide 65: Stable leadership position in International Operations
Investor Presentation - SRI focus March 2012 Slide no 65 Stable leadership position in International Operations International Operations insulin market by International Operation insulin volume segments market shares Modern insulin penetration Novo Nordisk Sanofi tMU Penetration Device penetration E
Slide 66: Sustained leadership position in Japan
Investor Presentation - SRI focus March 2012 Slide no 66 Sustained leadership position in Japan Japan insulin market by segments Japan modern insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration 16 100% 70% 14 CAGR volume: 3.3% 60%
Slide 67: Phase 3a programmes for Degludec and DegludecPlus completed in less than 18 months
Investor Presentation - SRI focus March 2012 Slide no 67 Phase 3a programmes for Degludec and DegludecPlus completed in less than 18 months BEGINTM and BOOSTTM timeline NN1250-3579: 12 mth vs. IGlar, T2 (N=1030) NN1250-3582: 12 mth vs. IGlar, T2 (N=1006) NN1250-3583 : 12 mth vs. IGlar, T1 (N=629) NN
Slide 68: BEGIN and BOOST confirm the profiles of Degludec and DegludecPlus
Investor Presentation - SRI focus March 2012 Slide no 68 BEGINTM and BOOSTTM confirm the profiles of Degludec and DegludecPlus Degludec OD vs insulin glargine OD1 DegludecPlus BD vs NovoMix® BD2 • Basal insulin with flatter, less variable profile and • First basal-prandial combination product of a d
Slide 69: Degludec and DegludecPlus current phase 3b trials
Investor Presentation - SRI focus March 2012 Slide no 69 Degludec and DegludecPlus current phase 3b trials Degludec Trial ID Comparator Purpose Participants Duration LPLV NN1250-3948 Degludec+NovoRapid® Victoza® add-on to Degludec N = 420, T2 26 weeks H2 2012 NN1250-3923 Degludec Compare formulation
Slide 70: Assessment of the insulin industry
Investor Presentation - SRI focus March 2012 Slide no 70 Assessment of the insulin industry • Suppliers Resistor Enabler for biosimilar competitor Driver Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physicians Cost pressure from pay
Slide 71: GLP-1 effect dependent on level of blood glucose - which reduces risk of hypoglycaemia
Investor Presentation - SRI focus March 2012 Slide no 71 GLP-1 effect dependent on level of blood glucose - which reduces risk of hypoglycaemia When blood sugar levels increase then GLP-1 GLP-1 lowers blood glucose in patients with does the following: type 2 diabetes Type 2 diabetes patients, no GLP
Slide 72: Victoza, the only once-daily human GLP-1 analogue for type 2 diabetes
Investor Presentation - SRI focus March 2012 Slide no 72 Victoza®, the only once-daily human GLP-1 analogue for type 2 diabetes Characteristics of Victoza® • Reduces blood glucose levels with a very low risk of hypoglycaemia • 13 hours half-life allows for once-daily dosing • Reduces weight • Reduce
Slide 73: The global GLP-1 market is expanding
Investor Presentation - SRI focus March 2012 Slide no 73 The global GLP-1 market is expanding Victoza® is driving the expansion of North America constitutes the majority of the global GLP-1 market the GLP-1 value market* GLP-1 sales in bDKK (right axis) DKK billion 5% 9 Other 8 6% Diabetes market sh
Slide 74: Victoza continues to drive the growth of the GLP-1 class in the US
Investor Presentation - SRI focus March 2012 Slide no 74 Victoza® continues to drive the growth of the GLP-1 class in the US Expansion of the GLP-1 market Key observations for the US market GLP-1 TRx scripts (thousands) GLP-1 % of diabetes market value (right axis) • Close to 70% of new patients com
Slide 75: In key European markets Victoza has expanded the GLP-1 class to nearly 10% of the diabetes market
Investor Presentation - SRI focus March 2012 Slide no 75 In key European markets Victoza® has expanded the GLP-1 class to nearly 10% of the diabetes market Development in key European GLP-1 markets following Victoza® launch Germany UK France Market value*: DKK 10 billion Market value*: DKK 5 billion
Slide 76: R&D pipeline: Diabetes and obesity
Investor Presentation - SRI focus March 2012 Slide no 76 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Degludec Ultra-long-acting basal insulin Type 1+2 DegludecPlus Ultra-long-acting basal insulin with a bolus boost Type 1+2 IDegLira GLP-1 and basal in
Slide 77: Biopharmaceuticals
Investor Presentation - SRI focus March 2012 Slide no 77 Biopharmaceuticals
Slide 78: Biopharmaceuticals – global leadership in select, high-value disease areas
Investor Presentation - SRI focus March 2012 Slide no 78 Biopharmaceuticals – global leadership in select, high-value disease areas Haemophilia Growth Hormone Inflammation with inhibitors Therapy 2011 sales: DKK 8.3 billion 2011 sales: DKK 5.0 billion 2011 sales: DKK 0 Global market position: #1 Glo
Slide 79: Haemophilia – a significant market suited for Novo Nordisk's core strengths within human proteins
Investor Presentation - SRI focus March 2012 Slide no 79 Haemophilia – a significant market suited for Novo Nordisk’s core strengths within human proteins Number of people with haemophilia A and B and haemophilia with inhibitors Sales of recombinant coagulation factors USD Novoseven® Xyntha®/Refacto
Slide 80: Haemophilia: Location of bleedings and the consequences
Investor Presentation - SRI focus March 2012 Slide no 80 Haemophilia: Location of bleedings and the consequences Head and neck • Bleeding in the joint space causes a strong Nose and gums inflammatory reaction which predisposes to further bleeding Joints • Inadequate or delayed treatment of repeated
Slide 81: Characteristics of the haemophilia market
Investor Presentation - SRI focus March 2012 Slide no 81 Characteristics of the haemophilia market • Hereditary disease with an increasing life expectancy leading to steady growing patient population • Relative few haemophilia physicians, i.e. a small target audience • Chronic disease leading to lif
Slide 82: NovoSeven - a unique biologic for the treatment of a rare bleeding disorders
Investor Presentation - SRI focus March 2012 Slide no 82 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® proporties DKK billion 2.2 CAGR 7.7% • Product characteristics: powder and solvent for solution for i.v. injection, available 2.0 in mu
Slide 83: Characteristics of the haemophilia market
Investor Presentation - SRI focus March 2012 Slide no 83 Characteristics of the haemophilia market • Suppliers Resistor Enabler for biosimilar competitor Driver Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physicians Cost pressure f
Slide 84: Vatreptacog alfa phase 2: Very low treatment failure rate
Investor Presentation - SRI focus March 2012 Slide no 84 Vatreptacog alfa1 phase 2: Very low treatment failure rate Comparison of treatment failure2 rate between Vatreptacog alfa and rFVIIa Summary and conclusions Treatment failure rate 12% • Vatreptacog alfa was well-tolerated at all doses 10.5% in
Slide 85: Human growth hormone market
Investor Presentation - SRI focus March 2012 Slide no 85 Human growth hormone market Development in global hGH market Growth hormone volume market share MAT volume kg (left axis) Pfizer Novo Nordisk kg bDKK Eli Lilly Roche MAT Value DKK (right axis) Merck Kgaa Sandoz 40% 35% 30% CAGR volume: 4.2% 25
Slide 86: Solid Norditropin sales growth
Investor Presentation - SRI focus March 2012 Slide no 86 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties DKK billion 1.5 • Product characteristics: Premixed, prefilled CAGR 8.4% multi-use delivery systems available in multiple strengths, some stable at room- t
Slide 87: R&D pipeline: Haemophilia and hGH
Investor Presentation - SRI focus March 2012 Slide no 87 R&D pipeline: Haemophilia and hGH Compound Type Indication Status (phase) 1 2 3 Filed Appr. Catridecacog rFXIII Congenital FXIII deficiency Turoctocog alfa rFVIII Haemophilia A N9-GP Long-acting rFIX derivative Haemophilia B Vatreptacog alfa r
Slide 88: Inflammation well suited to leverage Novo Nordisk's core capabilities
Investor Presentation - SRI focus March 2012 Slide no 88 Inflammation well suited to leverage Novo Nordisk’s core capabilities Protein focus • Mainstay of modern anti-inflammatory therapies Immunology focus • Novo Nordisk core competence • Direct pathogenic mechanism Protein for all autoimmune disea
Slide 89: R&D pipeline: Inflammation
Investor Presentation - SRI focus March 2012 Slide no 89 R&D pipeline: Inflammation Compound Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-NKG2D Monoclonal antibody Rheumatoid arthritis Anti-NKG2D Monoclonal antibody Crohn‟s disease Anti-IL-20 Monoclonal antibody Rheumatoid arthritis Ant
Slide 90: Financial performance
Investor Presentation - SRI focus March 2012 Slide no 90 Financial performance
Slide 91: US dollar and Japanese Yen currently above 2011 average
Investor Presentation - SRI focus March 2012 Slide no 91 US dollar and Japanese Yen currently above 2011 average 650 Spot rates Quarterly average Annual average Currency 2010 2011 Current assumptions1 average average rate2 600 USD/DKK USD 562 535 567 550 JPY 6.42 6.73 7.39 CNY 83 83 90 500 GBP 869 8
Slide 92: Solid sales growth driven by North America and International Operations
Investor Presentation - SRI focus March 2012 Slide no 92 Solid sales growth driven by North America and International Operations Reported annual sales Reported annual sales split by region DKK Diabetes Biopharmaceuticals billion North America Europe China Int. Operations Japan CAGR 9.7% 17% 14% 8% 1
Slide 93: Solid operating profit growth driven by diabetes
Investor Presentation - SRI focus March 2012 Slide no 93 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK billion Diabetes Biopharm 54% 46% 65% 35% 2007 2011 Note: Excl. cost related to discontinuation of all pulmonary activities in 2007 and 2008.
Slide 94: Profitability per segment
Investor Presentation - SRI focus March 2012 Slide no 94 Profitability per segment Diabetes P&L, 2011 Biopharmaceuticals P&L, 2011 DKK DKK billion billion 60 60 -21% 50 50 -33% 40 40 30 30 -13% 20 -5% 20 -11% +1% 29% -16% -20% 10 10 -5% +1% 49% 0 0 Sales COGS S&D R&D Admin OOI OP Sales COGS S&D R&D
Slide 95: Continued gross margin improvement combined with stable investment level
Investor Presentation - SRI focus March 2012 Slide no 95 Continued gross margin improvement combined with stable investment level COGS CAPEX DKK DKK billion billion COGS COGS as % of sales CAPEX CAPEX as % of sales 12 25% 4 6% 10 20% 3 8 4% 15% 6 2 10% 4 2% 1 5% 2 0 0% 0 0% 2007 2008 2009 2010 2011
Slide 96: Growing profits converted into free cash flow
Investor Presentation - SRI focus March 2012 Slide no 96 Growing profits converted into free cash flow Net profit Free cash flow (absolute) DKK DKK billion DKK billion Free cash flow Free cash flow as % of net profit 20 140% 18 120% 16 14 100% 12 80% 10 60% 8 6 40% 4 20% 2 0 0% 2007 2008 2009 2010 2
Slide 97: Long term financial targets: Operating profit growth and operating margin
Investor Presentation - SRI focus March 2012 Slide no 97 Long term financial targets: Operating profit growth and operating margin Operating profit growth Operating margin New long term financial target New long term financial target 30% Previous long term financial targets 40% Previous long term fi
Slide 98: Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings
Investor Presentation - SRI focus March 2012 Slide no 98 Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings Operating profit after tax to net Cash to earnings operating assets (three years’ average) New long term financial target New long term finan